Public liability insurance protects your business against the financial risk of being found liable to a third party for death, injury, loss or property damage. As a business owner, you have responsibility for the safety of your customers, employees, suppliers and the wider community, as well as third party property.
Public liability insurance includes the consequences of negligence or misconduct, whether on the part of you or your workforce. The amount of coverage required will depend on the risk it takes at regular intervals; moreover, on the minimum standards set by the industry.
Why do you need public liability insurance?
No matter how well you train your employees and conduct your business operations, you are always at risk of public liability claims. While not compulsory for all businesses to have public liability insurance cover, this type of insurance cover can be beneficial if business operations involve interaction with the public. Public liability covers a variety of situations, but in general, it protects your business in the event of someone getting injured due to the activities of your business.
Examples of accidents that lead to public liability insurance claims
- A third party injured as a result of an unsafe environment
- Damage to a third party’s personal property
- Injury caused by you or one of your employees, as a result of negligence
These are only a handful of instances where a business could be held liable for third party compensation. For instance, many public liability policies will be broadened to include product liability insurance, which provides financial protection if one of your products causes harm to third party persons or property.
Sydney Insurance Brokers recommends you take out public liability insurance if your business falls under the following categories:
- Consultants, tradespeople or contractors that work from home, visit clients’ premises or deal with the general public
- Any business that is involved in organising off-site events that are attended by the general public
- Any business that operates out of an office, shop, showroom or other type of physical premises
- Any business that interacts with customers or the general public
What does public liability insurance not cover?
- Generally a global policy, however excludes cover in USA & Canada
- Criminal action
- Contractual liability
- Asbestos
- Pollution
- Product recall
- Aircraft
- Registered motor vehicles
So extensive is the variety of events that can expose you to public liability that businesses usually require the expert assistance of a specialist in the field to ensure all risks are covered. The Sydney Insurance Brokers team includes experts in public liability who can appraise your operations and help you with identifying and assessing all risks that are relevant to you. If you want to be sure that your public liability insurance is up to scratch, contact us today.